The recent affirmation of the Government of Ghana’s issuer and senior unsecured rating at B3 and change in the country’s economic outlook to stable from negative by international rating agency, Moody’s, is indeed, an upgrade worth celebrating by the managers of the economy, Economist Dr John Gatsi has stated.
“The fact is that you were having a negative outlook, now it is positive, it’s an improvement; that’s all Ghanaians want and that is OK by me,” he said in response to an assertion by the vice-presidential nominee of the New Patriotic Party (NPP), Dr Mahamudu Bawumia during the launch of the party’s manifesto on Sunday in Accra that Moody’s has not upgraded Ghana’s credit rating contrary to assertions by the Mahama administration to that effect.
According to Dr Gatsi, a lecturer at the University of Ghana explained that “with that kind of improvement somebody can say it’s an upgrade, but the most important thing is that some challenges still remain within the Ghanaian economy that all people who are in charge of managing the economy should pledge themselves the more to work harder to ensure that greater improvement is achieved.
“As it is now, Moody’s has actually indicated an improvement in the outlook of the Ghanaian economy and those who are managing the economy have the right to actually assign credit to themselves that they are doing well, but the fact remains that more needs to be done,” he said.
Pressed about whether it was really an upgrade, Dr Gatsi said: “Of course, if you are negative and you are moved to positive, have you not been upgraded in the scheme of things?”
According to Dr Bawumia’s argument, Ghana’s credit rating got downgraded to (B-) under President Mahama despite having oil revenue at his disposal, from (B) positive (without oil under the NPP).
He said nothing had changed per the recent rating except the revised outlook, adding that: “In fact, international rating agencies like Moody’s, Fitch, and Standard & Poor’s now have basically the same credit rating for Ghana.”